INTERNSHIP REPORT

SUBMITTED TO

SIR USMAN GHAURIRegistrar of Hajvery University Lahore

SUBMITTED BY

FARAZ AHMADROLL#107-931

BBA HonsSESSION Feb 2007-DEC 2010

THE HAJVERY UNIVERSITY LAHORE

TABLE OF CONTENTS

Sr.# CONTENTS PAGE#1 Preface 42 DIB & Its Success Story 5 3 Dubai Islamic Bank 64 Product and Services 65 Board Members 66 Vision 77 Mission 78 Why Islamic Bank 79 DIB Global 910 DIB Pakistan Limited 1111 News & Event 1112 Deviation for prime Minister fund for 14 Relief of Victims of Terrorism13 DIB Branch Network 1714 DIB Best Islamic Bank in Middle East 17 15 Management Team 2016 Organization Chart 2117 Question/Answers 2218 Question # 1 2319 Question # 2 2520 Question # 3 26 21 Question # 4 2722 Question#5 2723 Question # 6 2824 Question # 7 30 25 Question # 8 31 26 Question # 9 3227 Question # 10 3228 Question # 11 33

PREFACE“Practice makes one perfect and “Theory without practice is sterile” are the commonly known proverbs. If education is meet for knowledge, Training is there to make one perfect. Taste is checked not told. Training always helps people to prove what the real essence of education is. That is why, internship is our BBA program is set as an internal part and must for all the students so that they can check the difference between what is taught and what is actually practiced in the market.

Different students are given assignments of internship at different organizations in different cities. I have prepared a report on that work that I had done internship in Dubai Islamic Bank Gulberg Lahore. I started internship out there on Jan 02, 2011 to Feb 28, 2011.

I have tried my level best to gain whatever was possible in this short span of internship period. This report is having all the information about the company.

DIB-ITS SUCCESS STORY

History

Dubai Islamic Bank being the world's first Islamic bank combines the best of traditional Islamic values with the technology and innovation that characterise the best of modern banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the undisputed leader in its field. It also has set standards for others to follow the trend towards Islamic banking which gathers momentum in the Arab world and internationally.

Islamic banking Dubai is one of the world's fastest-growing economic sectors, comprising close on 200 institutions responsible for assets estimated at more than $200 billion. Different Islamic banking sectors of Dubai for helping customers in easy banking includes :

● Johara Banking ● Business Banking ● Corporate Banking ● Investment Banking ● Real Estate finance ● Sharia Board ● Electronic Banking Service- (Online Banking,Mobile Banking, Calculator,Phone

Banking.) ● Retail Banking● Private Banking

Dubai Islamic Bank is a public joint stock company whose share is quoted on the Dubai Financial Market. The bank reported AED 1.56 billion in net profit for the year ended December 31, 2006 rising by 47% compared to AED1.06 billion for the year ended December 31, 2005. The profit for 2006, including depositors' profits, stood at AED 3.3 billion, an increase of 65% compared to AED 2 billion for the year ended December 31, 2005. Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in Sukuks for the Nakheel Group raising US$3.52 billion which stood at AED 38.8 billion, an increase of 28% over last year. Customer deposits also showed an aggressive growth of 43% over last year reaching AED47.7 billion in 2006.

The bank has been proactive in creating partnerships and alliances at local and international level. Few up coming projects and few on going projects:

● DIB to open branch in Dubai Industrial city. ● DIB launches new branch on AL Ittihad road. ● DIB team highlights strength of Islamic Finance sector to London-based

institutional investors. ● DIB concludes Emarati programme for 36 UAE nationals. ● DIB sets up campaign on Johara banking service ● DIB and AL HAMAD GROUP sign AED 735 million credit facility agreements.

As a leading bank in UAE, Dubai Islamic Bank is dedicated to the nation's economic development and prosperity and also providing products and services in the realm of corporate finance to stimulate trade and industry progress and expansion.

Dubai Islamic Bank Pakistan

  

Dubai Islamic Bank has established itself as the undisputed leader in its field. It was established in 1975. The Bank launched its operation by its first branch in the commercial city of Karachi on March 28, 2006. DUBAI ISLAMIC BANK: Dubai Islamic Bank is the pioneer Islamic bank of the world. It is unique in functioning as it a combination of Islamic banking and advance banking. Dubai Islamic Bank was launched in the year 1975, since then it has been the number one Islamic bank of the world. Dubai Islamic Bank founded the Islamic banking in the world.  Product and Services: Currently Dubai Islamic Bank is providing following services and products: 

Current AccountSaving AccountFixed DepositVISA Debit CardHome FinanceAuto FinancePriority BankingInternet/E-BankingPhone BankingLockersSchedule of Charges

Board Members Our Shariah Board members are widely acclaimed as leaders in the field of Islamic Finance. A humble introduction to each member is given here. 

● Dr. Hussain Hamid Hassan (Chairman and Shariah Advisor). ● Dr. Muhammad Qaseem. ● Dr. Ajil Jasimal Nashim.

 Dr. Muhammad Qaseem Dr. Muhammad Qaseem is currently Country Head of DIBPL’s Fatwa & Sharia Supervision Board. He has also served as a Shari’a expert in the Shari’a Structuring and Coordination Department with Emirates Islamic Bank. Dr. Qaseem holds a Ph.D in Tafseer and Qur’anic Sciences from the International Islamic University of Islamabad. Amongst his contributions to “Islamic Banking: Points to Ponder” and translation, under the aegis of IIUI, a part of the verdict of the Supreme Court of Pakistan, banning Riba as well as many other significant articles on various topics especially in the field of Tafseer. He has vast experience of teaching Islamic disciplines over a period of 18 years in B.A and M.A programmes of International Islamic University Islamabad.

Vision

Dubai Islamic Bank Pakistan will be the leading provider of world class banking – the Islamic way by being the first choice of our customers and our employees.

Mission

Dubai Islamic Bank Pakistan provides Sharia compliant financial services and products through the best of innovation, talent and technology. Value

WeValueTrustListeningInnovationSocial ResponsibilityFun

Why Islamic Banking?   In the light of Allah’s commands, it is obligatory on us to try to find and adopt the right banking system, one that follows the principles set by the Creator. Those who learn to differentiate between what has been allowed and what has been forbidden will be the ones with a clear conscience when they assemble in front of the Creator on the Day of Judgment.

Allah has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278-279] translate into:

 278. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are Indeed believers.

279. If ye do not, take notice of war from Allah and His Messenger: but if ye repent, ye shall have your capital sums; Neither will you deal with others unjustly, nor shall you be dealt with unjustly.

Beware! false interpretations of these verses has led many individuals to assume that the prohibition only relates to situations where the creditor is likely to charge exploitatively high rates of interest. It is wrong to see the above translation as proof that the (sole) objective served by the prohibition of Riba is the avoidance of injustice (in the sense of exploitation of the poor debtor by the rich creditor). In Islam, there is no room for Riba, marginal or otherwise. 

Riba gives birth to an economic system that is unjust; one that favors the rich at the expense of the poor. Rather than reward for effort and entrepreneurship with profit, the Riba based economic system rewards capitalists.

Islamic Finance attempts to create a fair economic system. It works on the principle of profit and loss sharing. Riba (Interest) is strictly prohibited in all its forms and kinds.

Islamic banks enter into trade and investment to earn Halal profit as they neither take deposits/funds on interest nor do they advance loans on interest. They have to purchase and sell assets in order to make profit from the higher sale prices or enter into investment arena. The most common sale contracts used by Islamic banks are Murabaha, Salam, Istisna, sale on deferred payment basis while Ijara is the sale of the usufruct of an asset owned by the bank. For investment, the Islamic banks have Mudaraba, Musharaka and Wakala structures.

Islamic banks have to strictly comply with the principles and rules of Shari’a which prohibit outright any transaction involving alcohol, pork, gambling, etc. Further, the Islamic modes of finance and investment used by these banks must fulfill the basic conditions of these contracts to be considered Shari’a compliant.

An Example

In an Islamic mortgage transaction, instead of lending money to the buyer, an Islamicbank buys the item from the seller, and sells it to the buyer at a profit with the sale price deferred and paid to the bank by the buyer/customer in installments. This mode of financing is called Murabaha. It is a Shari’a requirement that the bank must purchase the asset and get the title/ownership, and hence the associated risks and potential benefits before selling it to the customer. In conventional financing, the bank does not assume ownership or the associated risk. In such a system, capital alone is used to produce more capital.

Remember

At DIBPL we have a full fledged Sharia Department that monitors every transaction the bank is involved in. All products, marketing material and campaigns are also certified by this department ensuring that nothing is in conflict with the guidelines of Sharia.

Moreover Sharia Audit is conducted to ensure that none of the bank’s income is from transactions that were Sharia repugnant. If such a case is found, the income from the infringing transaction is removed from the bank’s profit and donated to charity.

Dubai Islamic Bank Global  

Thirty years ago, Dubai Islamic Bank ('DIB') created history by becoming the world's first Islamic Bank. Today, Islamic banking has become one of the fastest growing economic sectors with over 300 financial institutions, with assets estimated at over US $300 billion providingIslamicfinancialservices. 

Despite huge growth in the sector DIB continues to be the industry pioneer and undisputed market leader to date. Since its inception, DIB has evolved from a retail bank to a fully fledged bank catering to almost all the requirements of its customers in providing Sharia-compliant solutions to major local and international companies. It has constantly upgraded its services to private individuals, who remain a highly valuable elementofDIB'scustomerbase. 

By combining the best traditional Islamic values with high-standard technology and innovation, DIB is committed to not only fully comply with the principles of Shari’a in all its financial dealings but to also facilitate its customers who venture into the world of Islamic banking in such a befitting way that they would feel reaping the best rewards of boththeworlds.

For its outstanding performance and contribution to Islamic financing, DIB received the Best Islamic Bank in the Middle East Award (2006) by both Euromoney's Islamic Finance Weekly and Gulf Wealth Forum. DIB has also been awarded the Bank of the year(UAE)atthe2006BankeAwards.

DIB has not only been at the forefront of innovation but has excelled every step of he way. With the launch of Al Islami Internet Banking, DIB has re-affirmed its commitment to promote and develop Islamic banking in line with the requirements of the modern age. For these efforts, DIB received the Golden Trophy at the UAE Web Awards in 2006. DIB is also the first to offer a mobile SMS messaging service in both Arabic and English. Moreover, DIB became the first bank in the Middle East to introduce Internet Protocol(IP)foritsVisacardoperations.With path-breaking vision and bold strategies, DIB aims to enhance its status as a world leader committed to the goal of providing "World Class Banking."   a)Sukuk Powerhouse of the World   Sukuk is a hallmark of DIB’s product innovation capabilities. The development of Sukuk (Islamic bonds) has earned DIB several awards including Banker Middle East Industry Award for Best Bank and BestProductInnovation(2006).

DIB is honoured to have successfully led to manage the world's first airline Sukuk for the Emirates Group. This seven year Sukuk Al Mushtaraka valued at US $550 managed to attract investors’ participation from Europe and the Far East.

Based on its outstanding performance DIB has been awarded the largest Sukuk issue in the history of Islamic Banking world over for general funding and expansion needs of

Dubai and Jebel Ali Ports. The US $2.8 billion issue is being lead-managed by DIB and is part of a large financing package being arranged at a time when the ports' operator is bidding to become one of the world's largest. The 2-year bullet tenor Sukuk is also the first convertible Sukuk ever to be issued. 

This deal earned DIB the Governor's Award for Most Innovative Product (Sukuk) at the Kuala Lumpur Islamic Finance Forum 2006. The Sukuk was also dubbed the Middle East Debt Capital Markets' Deal of the Year by Euromoney International Financial Review. 

DIB has also co-managed Pakistan's first Sovereign Islamic Sukuk issue. This US $600 million received a tremendous response from the investors and consolidated the status of DIB as an Islamic Sukuk powerhouse.  

Dr Ashfaque Hasan Khan, Economic Advisor to the Ministry of Finance in Pakistan, has particularly acknowledged the bank's participation and significant contribution to the success of the transaction. 

The credit rating assigned to DIB by Standard and Poor's is 'A' long-term and 'A1' short-term for the year 2006. The DIB has also been assigned an A1/Prime 1 ranking by Moody's. The DIB aims to maintain the same high standards set for product development in the coming years.   b)Ensuring Sharia Compliance   To adhere to traditional Islamic values and ethics, the DIB relies on the expertise of scholars of high repute with extensive experience in law, economics and banking systems.

The members of DIB's Fatwa & Sharia Supervision Board specialize in law and finance as prescribed by Islamic code. The Board is appointed by the DIB's General Assembly and ranks above the Board of Directors.

The DIB's board supervises the development and creation of innovative Sharia-compliant investment and financing products and services to ensure that all the transactions are free from riba (interest) and all other Shari’a repugnancies. Thorough professionalism and a stringent compliance to rules have made DIB the pioneering organization to practice Islamic finance in its true letter and spirit. 

DIB also contributes to Islamic Banking and Finance seminars, conferences, exhibitions, workshops and studies such as those on Islamic Retail Banking to disseminate information and educate the masses on Islamic banking.   c)More Than a Bank   DIB takes pride in its efforts to expand the scope of Islamic funding by focusing on financing capital intensive sectors such as power, airlines, transportation, telecommunication, and real estate through common Ijara (leasing) facilities at both the local and regional levels. DIB has been financing landmark properties across the UAE such as the Jumeirah Beach Residence and the Dubai International Airport.

Deyaar, a 100% subsidiary and real estate arm of DIB, is the largest and most successful real estate company headquartered in Dubai. Deyaar acquires, develops,

rents and manages real estate throughout the GCC. Working with both large and small investors, Deyaar takes pride in building homes and not houses.

Tamweel, another flagship subsidiary of DIB, is the leading home finance service provider in the UAE. It is the only UAE based company offering Islamic home financing. The company has financed property worth over Dirham 7 billion and was recently converted to a Public Joint Stock Company with overwhelming demand subscriptions exceeding the required amount by 485 times.

Dubai Islamic Bank Pakistan Limited   Dubai Islamic Bank Pakistan Limited (DIBPL), commenced operations in 2006. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Under its consumer banking division, the bank is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks.  It also has expertise in providing Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services.

The Bank launched Pakistan's first Islamic Visa Debit Card and introduced financial products covering Home Financing, Auto Financing, and Depository products.

DIBPL has also introduced Priority Banking and Internet Banking, both of which are being recognized as benchmark products in their respective categories. Besides regular banking services, the Bank is committed to bringing foreign investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy.

DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in Dubai.

NEWS & EVENTSDonations for Prime Minister’s Flood Relief Fund - 2010 

In order to help the victims of floods all across Pakistan, donations are being accepted at all branches of Dubai Islamic Bank Pakistan Ltd. (DIBPL) in the account number 0087190001, titled “Prime Minister’s Flood Relief Fund - 2010”, as per State Bank of Pakistan’s instructions.

Donors are requested to deposit cash or cheques at any branch of DIBPL in the above mentioned online account.

DIBPL internet banking users can donate by transferring funds from their account into the fund account by using the Funds Transfer option.

Overseas donors who wish to send remittances may send instructions via telegraphic transfer in favour of “Prime Minister’s Flood Relief Fund - 2010” Account number 0087190001 at Dubai Islamic Bank Pakistan Ltd. SWIFT code DUIBPKKA

JCR-VIS upgrades the Short-Term Rating of Dubai Islamic Bank Pakistan Limited to A-1 (A-One)

Karachi, January 27, 2010: JCR-VIS Credit Rating Company Limited has upgraded the

short-term rating of Dubai Islamic Bank Pakistan Limited (DIBP) to ‘A-1’ (A-One) from ‘A-2’ (A-Two). The medium to long term entity rating has been maintained at ‘A’ (Single A). Outlook on the rating remains ‘Stable’.

The revision of short-term rating takes into account the recent capital injection of USD 9m by the sponsoring bank, allowing DIBP to meet the minimum capital requirement of Rs. 6b for FY09. Moreover, DIBP has also been able to post profitable results for the first time during the full year 2009; continuation of positive trends in this regard may further enhance the level of capitalization going forward.

Dubai Islamic Bank’s 10 new branches

Karachi - November 25, 2009. Dubai Islamic Bank Pakistan Ltd. (DIBPL) celebrated the opening of 10 new branches and 9 month profits at an event held in Karachi. The bank posted a profit before tax of Rs. 280 million for the first 9 months of 2009 and extended its network to 35 branches nation wide covering 15 major cities of Pakistan.

Speaking at the event, Governor SBP, Salim Reza commented, “DIBPL has shown exemplary performance in the Islamic Banking Industry over the past 3 years of its operations and has shown marvelous growth with excellent risk management practices

which has established it as role model for the industry to follow. The bank has been consistent in adding value to its portfolio of products and services.”

Addressing the audience, CEO DIBPL, M.A Mannan stated, “I am thankful for the enormous support DIBPL has received from customers and business partners. We are one of the few banks whose performance is on an upward trend since 2008.  DIBPL expects to post profit on a full year basis and will branch out with an addition of 30 new branches in 2010, our upcoming product offerings include branchless banking and SMS banking.”

DIBPL has shown tremendous improvement in performance and posted a profit before tax of Rs. 280 million for the first 9 months of 2009 as compared to a loss of Rs. 301 million in the corresponding period last year. 2009 will mark the first full year of DIBPL’s profitable operations in Pakistan.

The 10 new branches include 2 in Karachi on 26th Street (DHA) and Shahrah-e-Faisal, 2 in Lahore in Allama Iqbal Town and New Garden Town and one each in Hyderabad, Multan, Sialkot, Jehlum, Abbotabad and Mirpur (AK).

Dubai Islamic Bank – First Islamic Bank to bring Bancatakaful to Pakistan

Karachi, October 16, 2009: With the introduction of Al-Islami Saving & Takaful Plan, Dubai Islamic Bank Pakistan Limited (DIBPL) became the first Islamic bank to launch Bancatakaful in Pakistan maintaining its tradition of being an industry leader. The Al-Islami Saving & Takaful Plan, is a co-branded product with Pak Qatar Family Takaful Limited(PQFTL)andFWUAG. 

Speaking at the launch ceremony, M. A. Mannan, CEO DIBPL, said, “2009 is a very

blessed year for DIBPL. For the first time since inception, we have posted a profit before tax of Rs.174 million for the first six months of the year.  We will be opening 12 new branches before the end of the year, bringing our network to 37 branches in 16 cities, and with the introduction of Al-Islami Saving & Takaful Plan, we are now providing over-the-counter Takaful products at our branches, hence delivering our promise of world classbankingtheislamicway.  Elaborating on the product benefits, Syed Mujtaba Abbas, Head of Consumer Banking DIBPL added, “Al-Islami Saving & Takaful Plan is a unique Shariah compliant saving, investment and protection plan which is the Islamic solution to conventional life insurance. It offers the advantages of a savings plan, along with Halal returns on investments and fulfills the protection needs of customers in line with their religious beliefs.”

DIBPLPakistaoperationspostsprofit

Karachi, 30th April, 2009: For the first time since its inception in Pakistan, Dubai Islamic Bank’s Pakistan operations, has posted a profit before tax of Rs. 77.8 million for the quarter ended March 31, 2009.  On the back of a strong performance in 2008 and a further improvement in the first quarter of 2009, the bank is expected to post a profit on a full year basis.  This is a tremendous improvement over the corresponding period last year when the bank had posted a loss before tax of Rs. 169.7 million.DIBPL closed at Rs. 29.3 billion in total assets and Rs. 22.7 billion in deposits.  In a tough economic environment where the banking industry in general has witnessed a decline in profitability compared to the previous year, DIBPL has posted impressive results and performed well on both fronts including Corporate & Investment banking as well as Consumer Banking.  DIB has played a significant role in the Islamic banking industry by its participation in breakthrough transactions, cross border and regional advisory services and acting as a catalyst in attracting foreign investment in Pakistan. The consumer finance business has also sustained its growth trends and gained a leadership position in terms of incremental business.Due to its stable and positive performance, DIBPL has been assigned a medium to long term credit rating of ‘A’ (single A) with a ‘Stable’ outlook and a short term rating of A-2 (A-Two) by JCR-VIS.

Donations for Prime Minister’s Special Fund for Relief of Victims of Terrorism

In order to help the victims of terrorism in Dir, Swat, Bajaur and Waziristan Agency of NWFP and FATA, donations are being accepted at all branches of Dubai Islamic Bank Pakistan Ltd. (DIBPL) in the account number 0063531001, titled “Prime Minister’s Special Fund for Relief of Victims of Terrorism”, as per State Bank of Pakistan’s instructions.

Donors are requested to deposit cash or cheques at any branch of DIBPL in the above mentioned online account.

DIBPL internet banking users can donate by transferring funds from their account into the fund account by using the Funds Transfer option.

Overseas donors who wish to send remittances may send instructions via telegraphic transfer in favour of “Prime Minister’s Special Fund for Relief of Victims of Terrorism” Account number 0063531001 at Dubai Islamic Bank Pakistan Ltd. SWIFT code DUIBPKKA

DIB grows to 25 branches, reaches 40,000 customers in 2008

Karachi, 9th March, 2009: Mr. Khalid A. Kamda, Chairman of the Board of Directors DIB Pakistan chaired the Board Meeting of DIB Pakistan Limited to review the bank’s performance and formulate framework for future operations and expansion in Pakistan. The meeting was attended by Fahad Bin Fahad, Vice Chairman DIB Pakistan; Junaid Ahmed Chief International Head DIB; Saad Zaman, Deputy CEO DIB Capital; M. A. Mannan, CEO DIB Pakistan and other directors of the board.

Mr. Khaled Al Kamda, Chairman, Board of Directors, Dubai Islamic Bank said "One of the key strengths of our consumer banking business has been our mortgage and auto product performance - DIBPL has been the number 1 issuer of consumer products. Our prudent and innovative credit and risk management policies have led to a quality asset portfolio and have resulted in sustained business growth despite turbulent economic conditions. 8 new branches were opened and customer base has grown to over 40,000. The corporate and investment banking business exceeded its targets and this performance has been recognized in the form of prestigious awards like "Sovereign Deal of the Year" and "Pakistan deal of the Year" by Islamic Finance News for the consortium-led deal of Pakistan Domestic Sukuk Company."

Addressing the occasion, CEO DIB Pakistan, M. A. Mannan said: “DIBPL is running profitable operations in Pakistan since the last quarter of 2008, and this positive trend is expected to continue for the year 2009. DIBPL achieved 58% growth in deposits and 59% in financing during 2008. We closed the year at an asset base of over Rs. 30 billion, deposits of over Rs. 25 billion and a network of 25 strategically placed branches.  We are confident that DIBPL will achieve greater milestones during the coming year.”

The board meeting was followed by a stakeholder reception attended by Shaukat Tareen, Advisor to PM on Finance; Saleem Raza Governor SBP; Pervaiz Said, Director Islamic Banking and Advisor to Governor SBP and other distinguished guests from the banking and financial sector, various local and multinational companies and academia. 

Dubai Islamic Bank announces 2008 net profit of AED 1.73 billion

DUBAI - Feb, 2009: Dubai Islamic Bank (DIB) announced its financial results for the 12 months ending December 31, 2008, demonstrating continued strong growth in its core operations despite extremely challenging global financial conditions.

DIB reported AED 1.73 billion in net profit for 2008. These results were announced following a meeting of the Board of Directors of Dubai Islamic Bank, which has proposed a cash dividend of 25 per cent and bonus share of five per cent for the year 2008.

DIB’s total assets as of December 31, 2008, stood at AED 84.6 billion, up slightly compared to AED 83.7 billion at the end of the same period in 2007. Financing activity registered strong growth during the period, with total financing assets reaching AED 52.7 billion in 2008 compared to AED 40.4 billion in 2007, an increase of 30 per cent. Customer deposits increased two per cent to reach AED 66.4 billion in the 12 months ending December 31, 2008, compared to AED 65 billion in 2007.  The bank has also maintained an extremely strong financing-to-deposit ratio of 79 per cent as of December 31, 2008, a clear indication of DIB’s healthy liquidity position. DIB also reported a robust capital adequacy ratio of 12.2 per cent as of December 31, 2008.

As part of its international expansion plans, Dubai Islamic Bank established its presence in Pakistan in March 2006 as a wholly owned subsidiary, Dubai Islamic Bank Pakistan Ltd.(DIBPL).  Presently DIBPL is operating in Pakistan through a network of 25 branches in 10 cities of Pakistan, and attained an impressive balance sheet size of assets of over 30 billion rupees and liabilities of over 25 billion.  DIB has been acknowledged by both local and international financial analysts for its product innovation and world class operating standards. 

In 2008, Dubai Islamic Bank continued to work with strategic partners to launch new entities and special purpose vehicles in areas such as investment, real estate development, advisory and private equity. DIB has a representative office in Turkey, a fully operating office in Iran and has obtained approval for establishment of an Islamic Bank in Syria. Additionally, Dubai Islamic Bank, Dubai International Capital and Jordan Dubai Capital are also set to acquire a controlling stake in Industrial Development Bank of Jordan. These steps mark DIB’s ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan. Built on solid commitment to Islamic Banking principles, DIB aims to maintain its position as the world leader in Islamic banking.

Dubai Islamic Bank and Pak-Suzuki sign Auto Finance Arrangement Program

Karachi, 26th January 2009: Dubai Islamic Bank Pakistan Ltd. (DIBPL) signed a MOU with Pak-Suzuki Motor Co. Ltd. to become the first Islamic banking partner of the Suzuki Auto Finance Arrangement Program.

The ceremony was held at the DIB Head Office in Karachi, and the agreement was si gned by CEO DIBPL Mr. M.A. Mannan and Chief Executive & Managing Director Pak-Suzuki Motor Co. Ltd. Mr. Hirofumi Nagao.  Others present on the occasion were Syed Mujtaba Abbas, Head of Consumer Banking DIBPL and Mr. Ashfaq Hussain, Senior GeneralManagerMarketingfromPakSuzuki

This alliance reinforces DIBPL’s position as an industry leader; this arrangement will provide a one window operation to all those who seek to finance their Suzuki vehicles in a shariah compliant manner. Customers applying through the DIBPL – Suzuki Auto Finance Arrangement Program will enjoy preferential pricing and priority delivery.

“We are proud to be partnering with Pak-Suzuki Motor Co. Ltd. Dubai Islamic Bank has been a very aggressive player in the auto finance market; despite the challenging environment DIB’s auto finance portfolio is growing at a consistent rate. This has been possible due to DIB’s prudent policies and a competent and committed team” said Mr.M.A.Mannan,CEODIBPL.

On this occasion Mr. Nagao, Chief Executive & Managing Director Pak Suzuki, thanked DIBPL for partnering in this program and reaffirmed Pak Suzuki’s commitment to provide enhanced value to Suzuki customers through such programs.

Dubai Islamic Bank bags prestigious Islamic Finance News Awards

January 2009: Dubai Islamic Bank Pakistan Ltd. (DIBPL) outshone at the 4th Annual Islamic Finance News Awards, bagging two prestigious awards “Sovereign Deal of the Year” and “Pakistan deal of the Year” for its consortium-led deal of Pakistan Domestic Sukuk Company. The award category highlights Government of Pakistan’s three-year PKR6.525 billion (US$85 million) deal in September 2008 by Pakistan Domestic Sukuk Company.

This Ijarah Sukuk program was organized by Dubai Islamic Bank Pakistan in collaboration with Standard Chartered Bank (Saadiq) to raise money for the general purposes of the Government of Pakistan. It allows ongoing fund raising and establishes a Sukuk auction system akin to that for T-bills whilst allowing for various tenors. This deal plays a pivotal role in opening of the Pakistani market and building the infrastructure for future transactions as well as alleviating some of the financialburdenonthegovernment.

Other awards bagged by DIB were “Best Islamic Bank in UAE”, “Best Islamic Wealth Management Provider”, “Sukuk of the Year (Tamweel)”, Corporate Finance Deal of the Year (Al Jaber Group).

DubaiIslamicBankbranchnetwork

December 2008: Dubai Islamic Bank Pakistan Limited (DIBPL) opened 8 new branches during 2008 expanding the branch network to 25 in 10 cities of Pakistan. The new branches include 6 full service branches namely; Haidery and Shaheed-Millat Road, Z block in Lahore, F10 Islamabad, Satiana Road Faisalabad and Gawadar and 2 sub-branches namely;Dean Center in Peshawar and Khayaban-e-Ittehad in DHA, Karachi.

Dubai Islamic Bank named ‘Best Islamic Bank at Banker Middle East Awards

● Bank wins award for fourth consecutive year  ● DIB chosen from among hundreds of financial institutions after fierce competition

Dubai, June 22, 2008: Dubai Islamic Bank (DIB) has won the “Best Islamic Bank Award” at this year’s Banker Middle East Awards. This is the fourth consecutive year that DIB has won the award.

DIB was chosen after fierce competition from a list of many of the largest and most famous global financial institutions at a gala ceremony organised by Banker Middle East Magazine. The event took place on June 17 2008 at Emirates Towers in Dubai. Khaled Kamda, Chief Executive Officer of DIB and Managing Director of the DIB Group, accepted the award on behalf of the bank’s management.

Upon receiving the award Kamda remarked: “This award is a reflection of our status as the pre-eminent Islamic financial institution in the region. Since our inception in 1975, we have made every effort to not only remain at the forefront of innovation within the Islamic banking industry, but to be a pioneer in the field. As the world’s first bank to have incorporated Islamic principles in all our practices, it is natural that we are seen as a leader in Islamic finance.

He added: “Winning this award would not have been possible without the professionalism and dedication of our management and staff. As the markets of this region grow ever more sophisticated and demanding, it is reassuring that our team at DIB remains ready to take on every new challenge that comes our way.” Financial institutions of any size that operate in the Middle East are eligible for nomination at the Banker Middle East Awards. Winners are selected by a panel of experts based in the region who work in the finance industry and are leaders in their fields.

DIBPL closes 2007 at PKR 16.1 billion deposits

DIBPL closed 2007 with year end deposits of 16.1 billion. These have taken only 1.9 years of operation and account for an unprecedented growth of 273% in a very competitive market in 2007.

 35 Million Musharaka Facility for OPII

The signing ceremony of the appointment of DIBPL as the lead arranger by Orient Petroleum International, Inc. (OPII) for its $35 million syndicated Musharaka facility was held on Friday, May 25, 2007 in Islamabad.

Speaking at the ceremony, Sadruddin Hashwani, Chairman Hashoo Group of Companies said, “This is the first ever Salam based facility for any oil and gas exploration company in the world, thus creating a benchmark for future transactions internationally particularly in the commodities sector.”

Hashwani also appreciated the role of DIBPL in structuring, arranging and executing this Sharia compliant foreign currency off-shore facility for OPII adding, “Despite being a relatively new entrant in the Pakistani market, DIBPL has been successful in syndicating thisfacilitythroughotherprominentlocalbanks.”

By introducing an innovative Musharaka cum Salam structure for oil exploration and preparation of Shari’a compliant documentation for such a composite structure, DIBPL has not only proven its world class Shari’a expertise but has also demonstrated its commitment to innovation and promotion of new modes of investment and development of Pakistan’s economy.

Saad Zaman, CEO DIBPL at the time, thanked OPII for their trust and support. The Bank has been associated with various notable transactions including the Rs.4.2 billion Sukuk issue for Karachi Shipyard and Engineering Works and the Rs.8 billion Sukuk issue for WAPDA and is honored to be a part of this land-mark, first-of-its-kind transaction. 

Other Musharaka partners in this facility include United Bank Limited (Co-arranger), Habib Bank Limited and Muslim Commercial Bank Limited. The Bank of Punjab also played a vital role in this transaction. 

MANAGEMENT TEAMJunaid Ahmed - CEO

Syed Mujtaba Abbas - Head of Consumer Banking

Khurram Monawar - Acting Head of Corporate & Investment Banking

Jawad Majid Khan - Head of Distribution, Middle Markets & SME

Zahid Mansoor - Head of Treasury

Tahir Nazir Chaudhary - Head of Risk Management

Dr. Muhammad Qaseem - Country Head of Sharia’

M. Aamir Banatwala - Head of Operations

Irfan Johar - Chief Internal Auditor

Ammar Bin Mujeeb - Head of Information Technology

Wamiq Rizvi - Head of Human Resources

Syed Ammar Ali Zaidi - Chief Financial Officer

Uzman Naveed Chaudhary - Company Secretary and Head of Legal & Compliance

ORGANIZATIONAL CHART

Organizational chart is a diagram that represents the positions & relationship within an organization that reveals the company’s organizational structure...

Regional Head Corporate Head

Branch ManagerOperations Manager

Relationship ManagerOperation Manager

Clearing & Cash CountersATM & CDM

RemittancesPersonal Banking Consultant

Data Center Incharge

QUESTIONS

/ANSWERS

SESSION

Q1: Identification and description of the company and its activities.

Ans: Dubai Islamic Bank pakistan Limited is a Islamic base banking system. Whose encourage their customers while using Banking facilities on Islamic ways. It’s a world leading Islamic bank and worked in Pakistan since 2005. And its having a good Reputation in a short time. Product Structure: Product based on the sharia modes of

1. Musharaka (partnership)2. Ijarah (Lease)

The Bank and the customer form a partnership both with certain share in the asset (Sharkat-ul-Melks).

Dubai Islamic Bank then lease its shares in the Asset against a monthly rent.

Product Offereings:DIB Musharakah-cum-Ijarah auto financing will offer the following solutions to its customers.

SEGMENTS:

New car (1 - 7 years finacing period)Used car (1 - 7) < 5 yrs old Year of manufactured. Reconditioned Car (1-7)< 5 yrs old YOM.

Takaful Companies & Rates

Pak-Qatar General Takaful 2.95%Trakker Direct Insurance 2.95% New Jubilee Insurance Company 2.95% EFU General Insurance 2.80%

Early Settlement Charges Within 1st Year 8% Year 2 7%Year 3 5%More than 3 years 5%

Within 2 months of Vehicle Delivery 20% in Advance payments

Dubai Islamic bank --------------------------------Mortgage Finance

Dubai Islamic Home FinanceDubai Islamic Business Finance

Dubai Islamic Home Finance:

● Dubai Islamic Home Finance Was launched in Jan;07.● Since Launch, DiBPL has remained one of the most active performer in the home

Financing market.● Remained the market leader in terms of volume acquition in 2007&2008; in 2009

DIBP was at 2nd Position in term of market share. In Year 2010 DIBPL has maintained the position of 33% market share throughout the year.

Dubai Islamic Business Finance :● Duabi Islamic Business Finance was launcged in May09● It has the distinction of being the First Islamic Mortgege based Term Finance

facility in offering against residential property only.

Product Offering: ● Purchase of Undividend Share of the property (Home Renovation).● Purchased of undivided share of the property Mortgaged at other banks (Balance

Transfer Facility).Product Features:

● Minium Financing Amount of Rs 0.5million● Maximum Financing of up to Rs 50 million.● Financing of up to 80% of your property Value.● Financing tenor 3 to 20 years.● Complimentary property takaful coverage● Finance enhancement option ● Partial settlement option (Free of charge as per policy)● Early settlement option ● Tenor Rescheduling Option● Product swtiching Option (from 12MK to 6MK product)

Q2: Describe your and other nature of jobs you performed – be specific.

Ans: In this Regional branch there are three departments working which are

1. Consumer and commercial Banking2. Home and Auto Finance Department3. Trade Department.I worked in at consumer and commercial banking department. It has also sub departments which are as follows.

a. Customer service departmentb. Operations Department

i. Clearing (ii) Cash counter (iii) Remittance (iv) ATM’s Machines.c. Relationships Managers.

Customer Services Department:

In Customers services Department they are directly interact with the customer and manage all type of customer even customer is good or bad in dealing but they try to understand the customers and trying to satisfied and solve the problem of the customers.

Operations Department In this department there are four types of sub department which are

a. Cash Countersb. Clearing Counters c. Remittancesd. ATM Machines & CDM

Cash Counters

In Cash counter the customers cash their cheques and depoit their with in the bank time. The customer deposits in Pakistani currency or also in Foreign currencies according to the criteria of their account. But they only encash their cheques in PKR or US$ not in other currencies. According to the bank policies.

Clearing Counter:

In clearing counter all of the city or inter city cheques are cleared here .The cheques which are from inside the city cleared in same day. While The Inter city cheques are cleared within 2 to 3 days after compeleting all the procedure.

Remittances:

In remittance all the procedure which are doing in cash and clearing are report to the remittance department . It’s a senior department of both.This department has authority to handled all the payments which are coming from out side the countries and also the foreign currencies .

There is also a Operations Manager who control all three departments and also hold on Atm machines & CDM Cash Deposit Machines.

Financing Department:

There is a department of financing in the bank which is Financing the cars and and mortgagae homes according to the financing period of 1,2,3 or 5 years.

Trade Department:

Trade department is deals to those clients who are having a import export businesses and selling or buying products according to the banking law. They open L.Cs and then facilitate their clients.

Q3: What were most important things you learned? Ideas Skills?

Ans: I learned both of the things ideas and skills. While working in bank there is a lot of ways from which you got new ideas in banking sector.Because you diectly interact with every kind of customers while you working any kind of department. You also got the skills of talking different people in different ways.

Q4: Why and how did you did you select this company?

Ans: I select tgis companybecause it’s a Regonal Branch and it’s a Islamic Bank .And every one joining different banks and not going in Islamic bank. So, I want to try different.

Q5: Which courses were found relevant to your work in the company? How far were your courses applied in the work environment in this company?Ans: Many courses were found relevant work in the company. These are

● Human Resource Management ● Money banking & Finance ● Business Law …..etc

These are the courses which are applicable in this bank because

● Management is the compulsory course which are used in every kind of business and organization.

● Money Banking & Finance is the main course which is used in banks. This course is very much helpful for me While doing internship in DUBAI ISLAMIC BANK.

● Business Law is also very much help full in banking sector. But its used in Trade Department.

Q6: How did you apply your knowledge from your classes? Give specific examples.

Ans: Organizational Behaviour:

The enviornment of the organization is very much differentiated with their competitor.

The culture of the organization is too much dynamic that is encouraged to the individual

to do hardworking & show the achievement. Following are the practices that make the

enviornment of the organization dynamic.

Centralization/ Decentralization:

The organization is totally decentralized that everyone has followed the orders of

the Top management and completing their specifies tasks with in time.

Employees Relationship:

The environment has focused on the good relations among the employees. Each and

every employee is working in the friendly environment and co-operate with each other.

Human resources:

Following are the practices conducted in the DIB:

● Recruitment

● Hiring

● Training

● Performance Management

● Employee Development

● Pay structure

● Compensation & Benefits

Recruitment:

In DIB both recruitment processes are followed.

External Recruiting:

In the external recruiting, DIB advertises in its website. They also attract the job

applicants through the reference of existing employees.

Internal Recruiting:

They also make internal recruitment by hiring an existing employee to another

job according to the need.

Hiring:

The hiring procedure they have conducted is the following.

● Take the written tests

● Conduct the interview

Interview is compulsory in every hiring, while taking the interview the

regional manager and the specific department manager must be present.

Training:

In the training, DIB has gone for the two ways.

Internal Training:

The management has gathered its pool of the experienced people who trained the

employees in their skills, behaviors & attitudes.

External Training:

They hired the external employes & gives training to the employees and assists in the

different areas of job. The training period is of the two months.

Compensation and benefits:

The compensation and benefits given by the management are followings:

● Annual Bonus

● Specific leaves

Employees Development:

The Bank has strongly focused on the employee development.

● Cover the laps among the employees by using the frequently the mentor in the

organization.

● Make promotions regarding to their performance.

● Job rotation is also done if the managers see any need of it. But they also watch

the interest of the employee.

Q7: What are the weakest areas of performance of the company?

The company has no promote or innovative ideas of the new employee. New employee give the new ideas but senior management cant accept the fresh thinking of the new comers. They cant take the decision instantly of the newcomers however company has gone to be down. So, I think it’s a big weakness in that organisation.

Q8: what would you recommended to improve the company in the following areas made if you were chief executive:

A. Financial Cost Management: There is a lot of uses of extra expenses in this branch e.g photocopies expense, stationary expense, extra uses of tea and snacks, etc uses of electricity.

These all are extra expenses in this branch if we controlling it. There is a big diffenerce covered at the end of the month.

B. Employee Relation development: While employee relations are good but there is a little bit problem in this relations.

C. Customers Relations & Marketing : Customer relation is all over good but problem in marketing. Marketing are not in good manners. The Way of marketing is only Website or internal employees not newspaper or magazines or other ways.

D. Product or Services: The product an services are also in good manners.

E. Growth sales and increased profitability: The sales of Dubai Islamic Bank is approximately good and increased of profiability is also good. So I think there is no need of any kind of changes in this sector.

F. Social enviornmental Responsibilities: The enviornment responsibilty and social responsibilty is over all good.

G. Other : There is need of security in this branch. Because any body can move from here to there without permission and no one canask where you going and for what purpose you are walking int his branch.

Q9: Who are the major competitors of the company? How would you rank the company against its competitiors?

The following are the competitors of the Company:

1. Meezan Bank limited Premeire Islamic Bank

2. Albaraka Islamic Bank (Emirates Global Islamic Merged in it)

3. Bank Islami Pakistan Ltd

4. Dubai Islamic Bank Pakistan ltd

The Dubai Islamic Bank one of the largest bank in the world. But its rank is number

four in Islamic banking in Pakistan.

Q10: What are the future prospects for this company in your estimation and why?

Ans: With low salary requirements, minimal documentation and rapid processing, Al Islami Salam Finance is the latest Sharia-compliant product introduced by the world's first Islamic bank, which offers a complete suite of personal, business and corporate finance solutions.The product is based on the Islamic financing structure of Salam, which is a sale contract whereby the Bank pays the cash price in advance, and the Customer agrees to deliver goods with certain specifications and quantity on agreed future dates.Developed by the bank with the assistance of its subsidiary, Dar Al Sharia Legal & Financial Consultancy LLC, and approved by DIB Sharia Supervisory Board headed by Dr. Hussain Hamed Hassan, Al Islami Salam Finance provides customers the opportunity to receive cash price in advance, for a commitment to deliver a certain described commodity to Dubai Islamic Bank on agreed future dates. The product has also been presented to and approved by the United Sharia Committee of UAE Islamic financial institutions."Al Islami Salam Finance represents a milestone in Islamic banking," said Abdulla Al Hamli, Chief Executive Officer, It is set to revolutionise the future of Sharia-compliant banking in the region, and we are certain that it will prove extremely popular within our diverse customer base".Speaking on the occasion Dr. Adnan Chilwan, Chief of Retail and Business Banking, "Over the last few years, we have received feedback from our customers of a need for cash for various uses. In the absence of such a product, customers were compelled to approach conventional banks and seek conventional borrowing. Given this background, we were able to proactively identify a precise solution in the form of Salam, to highlight that we were able to identify Salam - as an Islamic solution to provide cash as an advance purchase price for certain described commodity to our customers in a Sharia compliant manner. Being a responsible leader in Islamic banking, we made sure that we fulfilled all Sharia requirements before launching the product".

 Q11: What person did you most admire in this organization? What qualities did he / she have?

Ans: I admire the Customer Service Executive . His work is take the order from the customers and he has the authority to take any decision related to customers. He has a attractive personality .He is consience but not show to others. I worked with him one month . I noted him, when he was talking with customers and other person like as a family member . He said to me if you haven’t no respect to talk with lower level of dealers or other persons you will not be able to grow up in the market. And he also have the ability to convince the any kind of customers related this feild .